Webjet (WEB)

Shares in the online travel company have steadily declined this year, as investors have fretted about the impact of cheaper competitors Zuji and Expedia. Last week’s strong full-year result helped alleviate some of those fears, however, with the company posting a net profit of $11 million, up 5 per cent on the previous year. The company also recorded a remarkable turnaround in sales in the second half, with annualised growth of 26 per cent for the June quarter compared with just 6 per cent in the December quarter. The company has been restructuring during the past year, relaunching its hotel booking service and migrating its service centre to Manila. On a forward price-earnings multiple of 12.1 times, the stock is cheaper than the competing hotel booker wotif.com.
Webjet
is extending a share buyback into 2011-2012, and will pay out a full-year dividend of 11¢.